A production function for the U.S. data can be expressed as...

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899559
Joined: Mon Aug 02, 2021 8:13 am

A production function for the U.S. data can be expressed as...

Post by answerhappygod »

A production function for the U.S. data can be expressed as Yt = AKtb1Ltb2 where A = Total factor productivity
Yt = Real output (in constant 1900 dollars)
Kt = Quantity of capital (in constant 1900 dollars) Lt = Labor hours/week

This expression can be linearized by taking the natural logarithms of each side of this equation. Based on annual data for the U.S. manufacturing sector 1945-1994, a study estimates a production function using the logarithms of the data and obtains the following regression results,
Dependent Variable: lnYt

Intercept (b0) lnKt (b1) lnLt (b2)
Regression
Error
Total
F-statistic
6.745406
p-value
0.010000
Coefficient Value
Standard Error of the Slope
2.81 0.53 0.91
df SS (sum of squares)
2 203693.3 47 181184.1 ___ _______
1.38 0.27 0.14
-----------------------------------------------------------------------------------------------
What are the degrees of freedom (df) associated with SST (sum of squares total)?


49
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply